In what can be described as the “music stopping” in a long round of musical chairs, the stock prices of Google (GOOG) and Goldman Sachs (GS) plunged Friday morning, shocking investors after both stocks had advanced in a seemingly endless rally.
Let’s take a quick look at both of these stocks’ daily charts to note the rise and fall.
First, Goldman Sachs:
Headline news recently broke (via the Wall Street Journal link here) that the SEC charged Goldman Sachs with fraud from transactions involving the sub-prime crisis.
This sent the stock plunging 13% (as of noon EST), erasing a month of steady gains in price. Volume surged as price fell.
Next, Google:
In one of those extremely frustrating experiences for new (and even seasoned) investors, Google reported upbeat earnings but did not achieve the “whisper numbers” of analysts with their quarterly profit numbers. Analysts also feared if Google could keep up the pace of profits into the future. Despite reporting a stable profit, shares fell sharply overnight.
I wrote a post entitled “Why Might a Stock Fall on Good News?” which explains in part why a stock price might fall despite good (or perceived good) news.
Keep watching these stocks for any sign of an ‘oversold bounce’ or if price continues to slide.
The decline in these (and other) stocks have send the US Equity Markets down over 1% so far this morning.
These are breaking stories, so keep watching these stocks for any sign of an ‘oversold bounce’ or if price continues to slide.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
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